Toronto Lawyer Grmovsek Sentenced to 39 Months for Massive Insider Trading Scheme

flag_of_canadaStanko J. Grmovsek, the Toronto lawyer who made an estimated $9 million over 14 years based on illegal insider tips from another attorney, was sentenced today to 39 months in prison. After a joint international investigation by the Ontario Securities Commission, the SEC, and the RCMP Integrated Market Enforcement Team, Grmovsek pleaded guilty to all charges against him in Canada and the United States.

The Financial Post reports that before being led away in handcuffs, Grmovsek stated that “I was certainly not the first (insider trader) but I can help the regulators so I may be the last.” Grmovsek’s accomplice, Gil Cornblum, killed himself in October shortly before the settlement with the OSC was announced.

As previously discussed here, Grmovsek and Cornblum devised an elaborate scheme spanning over a decade that involved Cornblum “spelunking” through his law firm in the middle of the night for inside information and stray documents on coming deals.

Read the Financial Post article

http://www.financialpost.com/news-sectors/financials/story.html?id=2415865